US BioEnergy Plans 100 mgy Ethanol Plant in Minnesota

US BioEnergy intends to construct a 100 million gallon per year (mgy) ethanol plant after obtaining options on a site located just east of Springfield, Minnesota. Contingent upon zoning, permitting, tax incentives and financing, US BioEnergy has agreements in place with Harvest Land Cooperative and CHS Inc. to assist with corn origination for the plant.

“One thing that attracted us to this site was the ability to work closely with Harvest Land Cooperative and CHS for corn origination. We need to have strong local relationships to make a plant of this size successful and we have that with these two groups,” stated Steve Myers, senior vice president, US BioEnergy. “The aggressive growth within the ethanol industry has a definite impact on our business — we think a positive one. This ethanol plant near Springfield is going to need a lot of corn,” said John McEnroe, Senior Vice President for CHS Inc. Country Operations, “and we welcome a new destination for our corn production.” The proposed plant near Springfield will be a 100 mgy natural gas fired, dry-grind ethanol facility. A plant of this size typically consumes approximately 37 million bushels of corn and produces 320,000 tons of dried distillers grains annually. Once operational, the facility could employ more than 40 people. US BioEnergy currently has two ethanol plants under construction: US Bio Albert City, a 100 mgy plant in Iowa; and US Bio Woodbury, a 45 mgy plant in Michigan. In addition, under development are US Bio Janesville, a 100-mgy plant in Minnesota; and US Bio Hankinson, a 100-mgy plant in North Dakota. Among other acquisitions pending or under consideration is US BioEnergy’s intention to acquire Val-E Ethanol, LLC, which was formed to develop a 45 mgy ethanol plant located near Ord, Nebraska. Val-E Ethanol is currently under construction with an expected completion date of summer 2007. Cliff Mesner, Chairman of the Val-E Board stated, “Partnering with US BioEnergy is an unexpected opportunity for Val-E. Being a part of a larger organization whose roots are deep in the Midwest is a benefit to this project. Both US Bio and Val-E value local relationships, this will be a win-win for everyone involved.”
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